Staff Report:
PPL’s production decreased to 713 MMscfd due to natural field depletion, lower offtakes from Kandhkot, and excessive line pressure in SNGPL’s network. Management forecasts production to be around 0.7 BCFde in FY25, with the Kandhkot field having the potential to add an additional 50 MMscfd to its current 90 MMscfd output.

On November 1, 2024, Pakistan Petroleum (PPL) held its Corporate Briefing Session, where management discussed financial results and future outlook.OGDC & PPL Cash Collection Ratios Surpass 100% in 1QFY25

The Government of Pakistan’s shareholding has been transferred to the Pakistan Sovereign Wealth Fund (PSW) following the enactment of the Pakistan Sovereign Wealth Fund Act, 2023.
PPL’s cash collection ratio improved to 81% in FY24 from 53% in FY23, and in Q1 FY25, it exceeded 100%. Management anticipates a decline in pending trade receivables this year, potentially improving dividend payouts, which are expected to return to 50% of earnings, depending on cash flows.

In FY25, PPL plans a seismic campaign of approximately 900 line km for 2D and 50 sq. km for 3D acquisition, and expects FTPE approval for Dhabi’s Block-5 by December 2024.
The company plans to incur CAPEX of Rs38 billion in FY25, with costs for exploratory and development wells ranging from US$3,000 to US$4,000 per meter.
In FY24, 61% of PPL’s revenue came from gas, 32% from oil, and the remaining 7% from LNG and other sources. By gas field, Sui contributed 43%, Kandhkot 16%, Adhi 2%, Gambat South 16%, and 26% from partner-operated fields. For oil, Adhi contributed 19%, Tal 35%, Nashpa 29%, Dhok Sultan 8%, with 9% from other sources.
The feasibility study and project financing for the Reko Diq project are expected to be completed by December 2024. Key risks include trade receivables, back pressure from SNGPL, lower offtakes by GENCO II, natural declines in mature fields, a depleting exploration portfolio, and security issues, particularly in frontier areas.